IFGL Refractories is planning to double capacity at Kandla in Gujarat and Ohio in the US, which it owns through a wholly-owned subsidiary.
Both the facilities produce continuous casting refractories, used mainly in steel plants. IFGL is a refractory supplier to steel plants. The expansion will cost an estimated $2 million (a little over ₹12 crore) and will be funded through internal accruals. The project is scheduled to be initiated this year.
According to a company spokesperson, following the expansion, the capacity of the Kandla unit will stand at approximately 144,000 pieces a yea . The annual capacity at the Ohio facility will touch 180,000 units.
Currently, IFGL has continuous casting refractory manufacturing facilities in Kandla (Gujarat) and Rourkela (Odisha); and another in the US with a total annual capacity of approximately 450,000 pieces.
This apart, its other refractory units are based out of China, Brazil, the UK, Germany and a second plant in the US. Two units in Taiwan and Czech Republic have been closed down.
Annual results The company, on a consolidated basis, reported an eight-fold increase in profit, to approximately ₹16 crore, for the period ending March 31, 2014. On a standalone basis, profit shot up by 75 per cent to ₹7 crore.
According to a company spokesperson, the return to profits of the Kandla and cost rationalisation measures across the company helped boost profits.
The board has meanwhile declared a dividend of 17.50 per cent or ₹1.75 on equity shares of ₹10 each.